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Agents normally split the commission between the listing agent and the buyers agent when they sell. If the listing agent also brings in the buyer, the listing agent gets to keep it all.
So while they don't have to pay 3% to a different real estate agent, they won't want to lose out on this 3%. So, they usually don't discount the price of the house if you go direct to the agent.
Some may have a different experience.....but I think that's most typical.
Keep in mind that in many cases realtors don't have to pay any commission to the broker except for a flat fee for costs, because they are selling their primary home........
So I would put in a low offer if I was you....and get a home inspector (one who isn't related to the builder)
Thanks everyone for your replies. We would definitely compare comps in the area, and maybe I'm being dumb and not reading well but I still don't understand how she's paying commission if she's the realtor and buyer's agent... She won't have to worry about paying another realtor 3%, so how is that not saving money for her? Either way, it's just 3% so it's not a big deal, but I was just curious if it would sway them to make a better deal. I know all we can do is offer (after we do more homework) and see what happens.
My first choice would not be to work with her since it is her house (I don't know how I could be objective and fair - not saying anything bad about real estate agents, but personally I would find it difficult too), but if we end up not getting her house, I may interview her to be our agent b/c she's been so helpful.
So can I just go look at the house w/ her since she's the listing agent and I don't have an agent yet?
Thanks everyone! You are really helpful.
Fisher, you are asking a great question and it *seems* like you could get the home for at least 3% off the list price.
What the agents here are saying is that you could get more than that off IF you use an agent. Why? Because they can look at the comps for you and help you craft an offer and negotiate. IF you feel that you can do that yourself, you should try. It is just in my professional experience that when someone like you shows up, I will get more.... Not Always. But you have to really know the market in that area.
If you are going to use an agent for this property, you should bring the agent in BEFORE you see the house, so everyone is on the up and up.
Once again, I say don't worry about how much the builder/agent/owner makes. Instead,
1) Look at what comparable houses are actually selling for (not listed) to see what a reasonable price to offer would be.
2) Look at your personal financial situation to see what you can afford
3) Decide if the home is worth XXX to you.
That will tell you what to offer!
The reason why is you will not get your value out of a house if you offer too much, regardless of the commission. If the builder lists it for 100%, you offer 97% (elimininating buyers agent 3% commission) you may think you got a deal but if in reality the house is only worth 90% you still lost money....
Once again, I say don't worry about how much the builder/agent/owner makes. Instead,
1) Look at what comparable houses are actually selling for (not listed) to see what a reasonable price to offer would be.
2) Look at your personal financial situation to see what you can afford
3) Decide if the home is worth XXX to you.
That will tell you what to offer!
The reason why is you will not get your value out of a house if you offer too much, regardless of the commission. If the builder lists it for 100%, you offer 97% (elimininating buyers agent 3% commission) you may think you got a deal but if in reality the house is only worth 90% you still lost money....
THANK YOU! Yes, this is the only number that should be important. How much is it worth TO YOU!
Once again, I say don't worry about how much the builder/agent/owner makes. Instead,
1) Look at what comparable houses are actually selling for (not listed) to see what a reasonable price to offer would be.
2) Look at your personal financial situation to see what you can afford
3) Decide if the home is worth XXX to you.
That will tell you what to offer!
The reason why is you will not get your value out of a house if you offer too much, regardless of the commission. If the builder lists it for 100%, you offer 97% (elimininating buyers agent 3% commission) you may think you got a deal but if in reality the house is only worth 90% you still lost money....
EXACTLY!!!!! and how do you find out number one? you can go to the courthouse and try to find out what the recent sales are (at our courthouse they are about 6 months behind), you can check out the completely out of touch zillow, or you can hire an agent who does this all day long.
This house we're looking at is listed, owned, and built by the realtor. I know this isn't too uncommon, but do you think if I allowed that realtor to represent me that may encourage her to give me an even better deal b/c of no other realtor fees? Or would it be sacrificing good representation?
The agent as the owner cannot represent you legally in SC (yes, it's illegal). How can the owner represent your best interest in a house they own they are trying to sell. You could possibly purchase unrepresented but I strongly advise against that in most situations and certainly this one.
Location: Nothing could be finer... I'm in S. Carolina!!
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i am in no way suggesting i would do this w/ out a realtor. did i ever say that? if i did give that assumption, i didn't mean to b/c even though i grew up in the area and look at the listing EVERYDAY and feel like i know what a fair price is for the house (which is not just 3% off), i would still never go w/out a realtor.
the whole question was whether to use her as the realtor and since brandon says that's not an option and i didn't see how it was possible for her to be unbiased, then as i said, i wasn't really leaning that way but if it made a big enough difference to the agent for me to use her b/c she'd be saving money and would in turn perhaps give a better price (aka accept a lower offer), then that was something i might be willing to do - b/c like i said, i do know what a fair price would be for the house. i just wouldn't want to go w/out representation.
i guess it's kind of confusing but i think the answer is no, using her as a realtor doesn't make a big enough cost difference to risk using her as a realtor.
You be better off with NO Realtor than with the seller as the Realtor. That'd be insane!
I have to agree. In what scenario can ANYONE think it's ok for the buyer to be represented by the very guy who owns the house the buyer wants to buy? If you have NO agent, at least you know you aren't getting any info from anywhere else, and you're on yoru own as to due dilifgence.
More to the point, is there a single agent here who would suggest that THEY be the agent for the buyer when they are selling their own house? Which of us would want to open THAT can of worms? Not I.
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....and get a home inspector (one who isn't related to the builder)
